Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

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Adi Ahdiat 13/01/2023 13:40 WIB

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The Netherlands was the largest buyer of Malaysian palm oil among EU member states, with a volume of 740,300 tons from January to November 2022.

Top 10 European Union Countries for Malaysian Palm Oil Exports (January-November 2022)

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Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

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Top 10 European Union Countries for Malaysian Palm Oil Exports (January-November 2022)

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The European Union (EU) agreed on a deforestation-free supply chain regulation in December 2022. This new regulation prohibits the sale of agricultural/plantation commodities deemed to be causing deforestation, such as cocoa, coffee, soybeans, timber, and palm oil.

In response to this regulation, Malaysia, the world's second-largest palm oil producer, has threatened to halt exports to Europe. "If we need to involve experts from abroad to counter the EU's move, we must do so," said Malaysian Commodities Minister Fadillah Yusof, as reported by Reuters on Thursday, January 12, 2023. "Alternatively, we will stop exporting (palm oil) to Europe and focus on other countries if the EU makes it difficult for us to export."

According to data from the Malaysian Palm Oil Council (MPOC), the EU is not a major export market for Malaysian palm oil. From January to November 2022, Malaysia's palm oil exports to the EU totaled approximately 1.3 million tons, roughly 9.3% of their total export volume of 14.2 million tons.

The Netherlands was the largest EU member state purchasing Malaysian palm oil during this period, with a volume of approximately 740,300 tons. The Netherlands is also Malaysia's fourth-largest palm oil export destination. However, exports to other EU countries are relatively small, as shown in the graph.

Malaysia's main palm oil export markets are generally in Asia and Africa. The largest buyers from January to November 2022 were India (2.6 million tons) and China (1.6 million tons).

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

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Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

Malaysia Threatens to Halt Palm Oil Exports to Europe: Who Are Its Customers?

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